Testamentary Trust
KNOWLEDGE EXPECTED OF: QAFP® Professionals
Highest Knowledge Level: Awareness
Knowledge Levels and Associated Verbs
Awareness
The state of being aware that something exists / to have familiarity with a particular activity or subject
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Understanding
To comprehend the general relationship of particulars / to have an expertise with how something works
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Application
Ability to put information to use / to use knowledge for relevant, practical purposes
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Evaluation
To judge or conclude by utilizing data / a systematic determination of something’s worth or significance
|
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Define
To state exactly the meaning of
|
Identify
To be aware of / to recognize and correctly name / to locate an appropriate resource
|
Explain
To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
|
Determine
To ascertain / to come to a decision, such as by investigation or reasoning
|
Compare
To note the similarities and differences between two or more things
|
Estimate
To determine an approximate value for
|
Calculate
To find the value using mathematics
|
Convert
To change from one form or purpose to another
|
Evaluate
To reach a conclusion or make a through careful study
|
Interpret
To give the meaning of / to construe or understand / to translate orally
|
Hold cursor over or click on each term to read its definition.
- Define a testamentary trust.1
- Identify methods to establish the terms of a testamentary trust, such as:
- In the will of a deceased testator
- By court order when an individual dies intestate
- Through a stand-alone life insurance trust
- Identify the purpose for which types of testamentary trusts may be used.
- Spousal or common-law partner
- Non-spousal or common-law partner
- Life insurance
REFERENCES
1 http://www.cra-arc.gc.ca/tx/trsts/typs-eng.html#testamentary
KNOWLEDGE EXPECTED OF: CFP® Professionals
Highest Knowledge Level: Application
Knowledge Levels and Associated Verbs
Awareness
The state of being aware that something exists / to have familiarity with a particular activity or subject
|
Understanding
To comprehend the general relationship of particulars / to have an expertise with how something works
|
Application
Ability to put information to use / to use knowledge for relevant, practical purposes
|
Evaluation
To judge or conclude by utilizing data / a systematic determination of something’s worth or significance
|
||||||
---|---|---|---|---|---|---|---|---|---|
Define
To state exactly the meaning of
|
Identify
To be aware of / to recognize and correctly name / to locate an appropriate resource
|
Explain
To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
|
Determine
To ascertain / to come to a decision, such as by investigation or reasoning
|
Compare
To note the similarities and differences between two or more things
|
Estimate
To determine an approximate value for
|
Calculate
To find the value using mathematics
|
Convert
To change from one form or purpose to another
|
Evaluate
To reach a conclusion or make a through careful study
|
Interpret
To give the meaning of / to construe or understand / to translate orally
|
Hold cursor over or click on each term to read its definition.
- Define a testamentary trust.1
- Identify methods to establish the terms of a testamentary trust, such as:
- In the will of a deceased testator
- By court order when an individual dies intestate
- Through a stand-alone life insurance trust
- Identify the purpose for which types of testamentary trusts may be used.
- Spousal or common-law partner
- Non-spousal or common-law partner
- Life insurance
Additional Knowledge Expected of CFP Professionals
- Identify the Canada Revenue Agency’s requirements for a testamentary trust to qualify as a spousal or common-law partner trust.2
- Identify for whom a testamentary trust may be suitable.
- Identify circumstances that may lead to a change in status of a testamentary trust.
- To become an inter vivos trust
- To become a non-spousal trust
- Determine how each of these factors may impact the suitability of establishing or maintaining a testamentary trust:
- Tax impact
- Bypassing of probate
- Privacy
- Protection from creditors
- Needs of beneficiaries and/or dependents
- Control of assets
- Time horizon
- Costs
- Administration
REFERENCES
1http://www.cra-arc.gc.ca/tx/trsts/typs-eng.html#testamentary
2 http://www.cra-arc.gc.ca/tx/trsts/typs-eng.html#spousal